Audit finds 2 Indiana online schools inflated enrollments

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INDIANAPOLIS (AP) — Indiana officials want to recover about $40 million from two online charter schools after an audit found they improperly received state payments by inflating their student enrollment figures.

The Indiana State Board of Education voted Wednesday to reduce by half the enrollment counts for Indiana Virtual School and Indiana Virtual Pathways Academy, which last year reported about 7,200 students. The State Board of Accounts audit says more than half of the schools' students were not active in any classes for at least six months during 2017.

State Examiner Paul Joyce says the audit will be turned over to the Indiana attorney general's office to possibly seek money from the schools.

The online schools' superintendent says the action is based on incomplete audits and could force immediate closure.

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